Being wealthy doesn't mean having all the money in the world, just not having to worry about it.

Roth IRA as Emergency Reserve?

Question: I was wondering what you think about using a Roth IRA as a “true” emergency reserve (job loss, etc.) vs. a cash reserve for “stuff that just comes up” (water heater breaks, fender bender, etc.). You could draw down the principal of the Roth tax-free, and if you invest in TIPs [Treasury Inflation Protected Securities], there Read more »

What about REITs?

Question: I have dropped commodities for the “well rounded portfolio” and embrace pretty much what you have advised here in this November post. But you don’t mention REITs [Real Estate Investment Trusts]. I still have about 8% in REITs but am thinking of selling those as well. Thoughts? Answer: REITs are businesses, so they fit into Read more »